Eurozone authorities should in future have greater powers to influence the economic policies of countries in the bloc if a member persistently fails to meet economic targets, ECB President Jean-Claude Trichet said on Monday.
In a speech entitled Tomorrow and the day after Tomorrow: A Vision for Europe, the outgoing European Central Bank president said euro zone states should examine all aspects of each others' economic policies.
A second stage should be envisaged for a country that persistently fails to meet its program targets, he added.
Under this second stage, euro area authorities would gain a much deeper and more authoritative role in the formulation of that country's economic policies, he said. Implementing this idea of the second stage would evidently require a Treaty change. It would also imply a new concept of sovereignty.
(Reporting by Paul Carrel and Annika Breidthardt)